HSBC cranks up the pressure on Huishan Dairy

Banks seemingly loses patience with a company whose troubles have underlined investor concerns about financial disclosure in China.

Huishan Dairy, the embattled Chinese company, faces a deepening debt crisis after HSBC, on behalf of five other banks, demanded the repayment of loans totaling $220 million, highlighting the perils of investing in China's more esoteric sectors.

Once a high-profile example of the country's broadening equity appeal  the company raised $1.3 billion from an initial public offering in 2013  Huishan Dairy is fast becoming a poster child for what can go wrong for adventurous investors in China who fail to do their due diligence.

Trading in the group’s Hong Kong shares has been suspended since March, after the stock...

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